KL, Penang airports expect cargo volumes to rise

Malaysia's Kuala Lumpur and Penang airports are expected to handle 170,000 tonnes of cargo this year, an increase of 38 per cent compared to last year's total, the Shipping Gazette informs.

Penang Freight Forwarders Association president Krishnan Chelliah said in a report by the Malaysian Star that for the first 10 months of the year, the volume of cargo handled at both airports amounted to 142,538 tonnes, up from 98,502 tonnes for the same period last year.

"The increase has to do with the robust growth experienced by the country in the first half. This shows that manufacturers of electronics products and perishable goods such as food and agricultural items, are producing in full force," he said.

According to Mr Krishnan air freight rates were presently maintained at between US$2.50 and $3.50 per kilogramme, depending on whether the destination is the US or Europe, with the most of the freight bound for the US, Europe and Australia.

He said air freight rates were still high because there was not enough capacity as major airliners had yet to add freighters.

"The economic and industrial activities in South Korea, China and Japan are still at their peak, which means customers in these countries are willing to pay airline carriers premium air freight rates to export to the United States and Europe.

"But we are unlikely to see an increase in air freight rates in the next few months as we are approaching Christmas holiday, which is normally a slow period," he added.

Mr Krishnan said North Butterworth Container Terminal was expected to handle over one million TEU by the end of November.

"Freight rates to the United States are now about $1,800 compared with about $2,000 in June. To Europe, the rate is now about $1,600 per TEU compared with $2,000 in June. The rates have dropped as ocean carriers have increased their capacity," he added.
(Source:www.transportweekly.com)